When I was playing today. I shot at this one tank half hiding by the wall. I was shooting at the tracks with with HE. But the shell went towards the cupola behind the wall. It could be normal dispersion or could it be my deadeye kicking in? if it's the deadeye. This should be fixed. If a gunner is a deadeye shot. There is no way he would shoot at the wall. If the deadeye does kick in. It should send the shells only at exposed critical spots

If deadeye has nothing to do with where the shot goes? How does it increase the chance for a crew or module get hit? It has to guide it towards where the crew or module is.

Modules have their own HP pool which is not visible. You can only see when your module turns to yellow (damaged) or red(destroyed). Modules have this "saving throw" .

Direct quote from wiki:

When a module or crew member is hit, they do not necessarily take damage from the hit. Instead, most modules have a specific chance not to take damage. This is also referred to as a saving throw. The base chances of damaging a specific module or crew member when hitting it are as follows:

Suspension: 100%

Engine: 45%

Fuel Tank: 45%

Observation Device: 45%

Radio: 45%

Turret Ring: 45%

Gun: 33%

Ammunition Rack: 27%

All crew members have the same chance to get knocked out when hit, however starting with game version 0.7.4 this chance depends on the damage type:

Crew hit by AP/APCR/HEAT shell: 33%

Crew hit by (internal) explosion: 10%

Each of these base chances to damage a module or knock out a crew member can be increased by 3 if the Deadeye perk is active for your Gunner at the time of a shot with an AP, APCR or HEAT shell.